Prime US REIT reports 1Q22 net property income rose 10 percent

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Prime US REIT reported Wednesday its first quarter net property income rose 10.4 percent on-year to US$25.44 million on the acquisitions of Sorrento Towers and One Town Center.

Gross revenue for the three months ended 31 March grew 13.6 percent on-year to US$40.84 million, the REIT said in a filing to SGX.

Distributable income for the quarter increased 19 percent on-year to US$20.90 million, with the faster pace of growth compared with net property income due to lease termination income, the REIT said.

Parking revenue recovered in the quarter, rising more than 30 percent on-year, as tenants gradually returned to the office, the filing said.

Rental reversion for the quarter was positive 3.4 percent, Prime US REIT said.

“Amid the Covid-impacted environment, rental reversions over last seven quarters have consistently remained positive. Portfolio rents are also below asking rents by 6.0 percent, reflecting the continued potential for rental reversion,” the REIT said.

Portfolio occupancy was at 89.9 percent, the REIT said.

Prime US REIT has a portfolio of 14 office properties in 13 U.S. office markets, with a carrying value of US$1.66 billion as of end-March.